v3.22.4
UNEARNED REVENUE
 6 Months Ended
Dec. 31, 2022
Revenue From Contract With Customer [Abstract]  
UNEARNED REVENUE

NOTE 12 — UNEARNED REVENUE

Unearned revenue by segment was as follows:

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

2022

 

 

June 30,
2022

 

 

 

 

Productivity and Business Processes

 

$

20,120

 

 

$

24,558

 

Intelligent Cloud

 

 

15,822

 

 

 

19,371

 

More Personal Computing

 

 

3,684

 

 

 

4,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

39,626

 

 

$

48,408

 

 

 

 

 

 

 

 

 

 

 

 

Changes in unearned revenue were as follows:

 

(In millions)

 

 

 

 

 

 

 

Six Months Ended December 31, 2022

 

 

 

Balance, beginning of period

 

$

48,408

 

Deferral of revenue

 

 

48,188

 

Recognition of unearned revenue

 

 

(56,970

)

 

 

 

 

 

 

 

Balance, end of period

 

$

39,626

 

 

 

 

 

 

 

Revenue allocated to remaining performance obligations, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods, was $193 billion as of December 31, 2022, of which $189 billion is related to the commercial portion of revenue. We expect to recognize approximately 45% of this revenue over the next 12 months and the remainder thereafter.